Care and maintainance is expected to cost 12 m a year .net of all expenses of C and M , pdn expect to improve cash flow 7-10 m in year one and 25 in year two. Essentially it protects the company cash position by 27-35 million usd over 2 years
Assuming all in costs are another 6-7 dollars, spot would need to move to about 45-46 for KM to break even .
The decision protects the downside while maintaining upside . As far as I can see the only way this would be a financially poor decision is spot moves above 50 in a year .
Pdn has given itself a good 2-3 years to see a u price increase. After considering the news it justifies a rerating upwards on an FA basis .
pdn, page-24
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Last
$7.29 |
Change
-0.050(0.68%) |
Mkt cap ! $2.180B | |||
| Open | High | Low | Value | Volume |
| $7.45 | $7.47 | $7.14 | $32.63M | 4.489M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 9130 | $7.27 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $7.30 | 7340 | 3 |
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| Last trade - 16.10pm 15/11/2024 (20 minute delay) ? |
| PDN (ASX) Chart |